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L&T Q3 net profit up 5% at Rs 2,467 crore, order book at record high

The company's gross revenue declined by 2 per cent to Rs 35,596 crore as COVID-19 restrictions continued to have an impact on project site execution and Hyderabad metro operations.

twitter-logoBusinessToday.In | January 25, 2021 | Updated 19:39 IST
L&T Q3 net profit up 5% at Rs 2,467 crore, order book at record high
The PAT also includes gain on divestment of Rs 209 crore from discontinued operations for the quarter ended December 31, 2020, L&T said.

Larsen & Toubro (L&T) Ltd on Monday reported a 4.9 per cent year-on-year increase in consolidated profit after tax (PAT) at Rs 2,467 crore during October-December quarter of the ongoing financial year on higher profit from IT and technology services segment and sale of commercial property in realty segment. The PAT also includes gain on divestment of Rs 209 crore from discontinued operations for the quarter ended December 31, 2020, L&T said in a release.

However, the company's gross revenue declined by 2 per cent to Rs 35,596 crore as COVID-19 restrictions continued to have an impact on project site execution and Hyderabad metro operations. Sequentially, gross revenue rose 15 per cent from Rs 31,034 crore in July-September quarter.

"International revenue during the quarter at Rs 12,967 crore constituted 36 per cent of the total revenue," the release said. L&T booked its highest ever orders in December quarter, registering a 76 per cent year-on-year rise in order inflow at Rs 73,233 crore.

"The consolidated order book of the Group stood at a record Rs 3,31,061 crore as at December 31, 2020, registering a robust growth of 9 per cent over the March'20 level. The international orders constitute 20 per cent of the total order book," it said.

L&T's infrastructure segment bagged orders worth Rs 45,574 crore during the quarter, an increase of 80 per cent over the corresponding quarter of previous year. The segment's order book stood at Rs 2,45,316 crore as on December 31, 2020.

The heavy engineering segment registered almost 100 per cent increase in orders at Rs 998 crore during the December quarter, led by orders contracted in the nuclear business. "The hydrocarbon segment secured orders valued at Rs 12,820 crore during the quarter ended December 31, 2020, supported by receipt of some large value domestic orders in the petrochemicals space," it said.

The IT and technology services (TS) segment saw a 7 per cent rise in customer revenue at Rs 6,505 crore, with EBITDA (earnings before interest, tax, depreciation and amortisation) margin expanding to 25.5 per cent from 21 per cent in the December quarter a year ago on higher revenues, improved manpower utilisation and lower operational costs.

On outlook, the company said the Indian economy is recovering at a better-than-expected pace since July-September quarter. "However, significant private sector led capex could continue to remain in wait and watch mode, in the medium term."

Globally, it said, business sentiments remain cautious as localised repeat outbreaks of COVID-19 virus and the resultant lockdowns continue to hamper sustained economic recovery.  In the near-term, uncertainty on trade front between US and China is likely to continue and forecast of subdued oil prices will affect Middle Eastern economies.

"New project opportunities are mostly seen in water, transportation, power transmission and distribution and renewable energy and green fuels. The prospects for IT and TS segment appear promising with increased opportunities in technology led outsourcing and digital transformation," it said.

Also read: L&T's construction arm wins large transmission orders in Bangladesh

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